Bank of England abandons part of QE program after traders make bonds too expensive

[doodab]

Unlikely - probably tried to sell stuff they don't have at spekulatively high price, if they had got the deal they would have bought same bonds on cheap.

The only loser in this is a taxpayer.

HTH

For the price to go up like that someone had to be buying.

[doodab]

What this means is that BoE thinks that yield of 8.75% on Govt AAAAAAAA quality bonds isn't good enough to tolerate inflation that will hit us until 2017

The coupon is 8.75%, the yield is substantially lower.

[AtW]

The coupon is 8.75%, the yield is substantially lower.

Good point.

It is a sign of times however - traders are not afraid to bed against BoE and The Feds (FRS).

[doodab]

Good point.

It is a sign of times however - traders are not afraid to bed against BoE and The Feds (FRS).

They aren't afraid of anyone. That's the problem these days. Personally I would look at introducing laws forbidding some forms of secondary trading of government bonds. Minimum holding period, no naked shorting, stuff like that. Essentially keep the speculators out of the market so that it functions properly.

[AtW]

They aren't afraid of anyone. That's the problem these days. Personally I would look at introducing laws forbidding some forms of secondary trading of government bonds. Minimum holding period, no naked shorting, stuff like that. Essentially keep the speculators out of the market so that it functions properly.

***k! Wrong login!!!